There may be a flurry of activity in several accountants’ offices over the next 10 weeks as farm families grapple with how changes to the capital gains inclusion rate and exemption laid out in the latest federal budget may impact their succession planning.

The government plans to increase the taxable portion of capital gains — the difference between the purchase and the sale price of property or an investment — in a given year from one-half to two-thirds. For individuals, the higher rate would only apply to capital gains above $250 thousand, with the old one-half rate still applying to the first $250 thousand in gains. The higher two-thirds rate would be applied to all capital gains realized by corporations and trusts.

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